No Worries! When Selling Structured Settlement Payments You Will Not Have To Pay Any Taxes
Federal law allows for structured settlement payments to be set up in a way where there is no structured settlements tax, that is no income tax at all. Most likely, if you received a payment for a personal injury case or other lawsuit then the settlement payments are tax free, and, further, any lump sum that you receive from selling those payments would be tax free. But let’s look at some other potential considerations as far as paying income tax and how that might relate to selling periodic payments.